This document summarizes the Indian government's policy and actions regarding foreign aid to states, specifically addressing questions raised in Lok Sabha Unstarred Question No. 33 on July 21, 2025.
**Key Points:**
* **Maharashtra's Chief Minister's Relief Fund:** While initial inquiries suggested no permission had been granted to Maharashtra to receive foreign contributions under the Foreign Contribution Regulation Act (FCRA), 2010, the Chief Minister's Relief Fund, Maharashtra, independently applied for and received FCRA registration in May 2025 after fulfilling all statutory conditions.
* **FCRA Requirements:** Section 11 of the FCRA, 2010, stipulates that entities must obtain a certificate of registration or prior permission from the Central Government to accept foreign contributions. Applications are submitted online via Form FC3A or FC3B through the Ministry's portal (https://fcraonline.nic.in), accompanied by required documents like the memorandum of association, activity reports, audited financial statements, and affidavits. Eligibility conditions under Section 12 of the Act, including lawful existence and engagement in genuine activities for the benefit of society, must be met for registration.
* **Kerala's Chief Minister's Distress Relief Fund (CMDRF):** The FCRA portal indicates that no application for registration or prior permission under FCRA, 2010, had been received from CMDRF, Kerala.
* **Exemptions:** Notification S.O. 459E, dated January 30, 2020, issued under Section 50 of the FCRA, exempts certain government-established organizations from all provisions of the FCRA. These organizations must not be political parties, must be constituted by a Central or State Act or government order, be wholly owned by the respective government, and be subject to compulsory audits by the Comptroller and Auditor General of India (CAG) or its agencies.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for economic affairs, taxation, financial institutions, capital markets, and expenditure.
Foreign Contribution Regulation Act FCRA: An act regulating the acceptance and utilization of foreign contributions by individuals and organizations in India.
State of Maharashtra: A state in western India. Mentioned in relation to receiving foreign contributions for the Chief Minister's Relief Fund.
Chief Minister's Relief Fund: A fund managed by the Chief Minister of Maharashtra, used for providing relief to people in distress.
State Government of Kerala: The government of the state of Kerala in southern India. Mentioned regarding a request for foreign aid following floods in 2018.
Pankaj Chaudhary: Minister of State in the Ministry of Finance.
Chief Minister's Distress Relief Fund CMDRF, Kerala: A fund in Kerala used for providing relief to people in distress.
Comptroller and Auditor General of India CAG: An authority established under Article 148 of the Constitution of India, who audits all receipts and expenditure of the Government of India and the state governments.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UN-STARRED QUESTION NO.33
TO BE ANSWERED ON 21.07.2025
Foreign Aid to the States
33. Adv. Adoor Prakash:
Will the Minister of Finance be pleased to state:
(a) whether the Government has granted permission to the State of Maharashtra to receive
foreign contributions under Foreign Contribution Regulation Act (FCRA) for the Chief
Minister's Relief Fund;
(b) if so, the details thereof;
(c) whether the Government had declined the request of the State Government of Kerala
for accepting foreign aid following the flood occurred in the State in 2018;
(d) if so, the details and the reasons thereof; and
(e) the criteria for accepting the foreign aid to the States?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (e)
As intimated by the MHA,
• no permission has been granted by the Government of India to the State of
Maharashtra to receive foreign contributions under Foreign Contribution Regulation
Act (FCRA), 2010.• As per Section 11 of the Foreign Contribution (Regulation) Act, 2010 (FCRA), no
person shall accept foreign contribution unless such person has obtained a
certificate of registration or prior permission from the Central Government.
Applications for registration or prior permission are to be submitted online in Form
FC-3A or FC-3B respectively, through the Ministry's portal https://fcraonline.nic.in.
These applications must be accompanied by requisite documents such as the
memorandum of association, activity reports, audited financial statements, and
affidavits/ declarations by office bearers, as prescribed under the Rules.
The grant of registration is subject to fulfilment of eligibility conditions under Section
12(4) of the Act, including lawful existence, engagement in genuine activities for the
benefit of society etc.
In accordance with these provisions, the Chief Minister's Relief Fund, Maharashtra,
which is a distinct legal entity incorporated as a public charitable trust,
independently submitted an application under the FCRA. Upon examination of its
application and satisfaction of all statutory conditions, FCRA registration was
granted in May 2025.
• As per FCRA portal, no application for registration or prior permission under FCRA,
2010 had been received from Chief Minister's Distress Relief Fund (CMDRF),
Kerala.
• Further, in exercise of the powers conferred under Section 50 of the FCRA, the
Central Government has, vide Notification S.O. 459(E), dated 30th January 2020,
exempted organisations (not being a political party), constituted or established by
or under a Central Act or a State Act or by any administrative or executive order of
the Central Government or any State Government and wholly owned by the
respective Government and required to have their accounts compulsorily audited
by the Comptroller and Auditor General of India (CAG) or any of the agencies of the
CAG, from the operation of all provisions of the FCRA.